Investment Firm Launches SEC-Registered Fund Built on the Ethereum Blockchain. The Grayscale Ethereum Trust has become an SEC reporting company. This follows the approval of the Registration Statement on Form 10 filed with the Securities and Exchange Commission (“SEC”) on behalf of the trust. By this approval, the Grayscale Ethereum Trust will now file quarterly and annual reports, including its financial statements, on Form 10-Qs and 10-Ks with the SEC.
Also because of the arrangement, the statutory holding period of shares purchased through the trust’s private placement will be reduced from 12 months to 6 months. This is subject to meeting the other requirements under Rule 144 of the Securities Act of 1933, as amended. The reduced statutory holding period will henceforth grant investors who own or purchase shares from the Trust’s private placement access to early liquidity opportunities.
Grayscale is the largest cryptocurrency investment platform. With many cryptocurrencies under management, the company has grown to become the favorite investment vehicle for corporate investors coming into the cryptocurrency industry. Earlier this year, it was reported that it bought 50% of all Ethereum mined in 2020. The company also currently holds over 2% of Bitcoin’s circulating supply in its Bitcoin Trust.
Ethereum is now the second of Grayscale’s assets to become an SEC reporting company after its Bitcoin Trust was registered with this status in January. Grayscale’s shares provide a convenient and cost-effective way for investors to enter the cryptocurrency market through their cryptocurrency trusts which have continued to grow.
As at the time of writing this article, Grayscale has almost $6 billion in assets under management including top assets such as BTC, ETH, XRP, LTC, BCH, and many others. At the end of September, it bought an additional 17,000 Bitcoin to further increase its Bitcoin holdings. The approval of its assets as SEC reporting companies will likely increase patronage from both individual and corporate investors as it will boost their confidence in digital assets under the company.
Other corporate investment platforms such as Bakkt are also working to drive cryptocurrency adoption among corporate organizations. According to recent reports, there are at least 500,000 Bitcoins on corporate balance sheets worldwide.